A series of “today-actionable” business actions that reduce energy demand could save the global economy at least $2 trillion annually, while boosting growth, saving companies money and unlocking competitive advantage. , potentially contributing to the reduction of greenhouse gas emissions.
This is the conclusion of a major new study endorsed by more than 120 global company CEOs, and shows a number of short-term actions businesses can take to reduce energy demand across buildings, infrastructure and transportation use. is shown.
The study, produced by consulting giant PwC in collaboration with the World Economic Forum (WEF), aims to help businesses take cost-effective energy efficiency measures by the end of this decade and better support them with effective policy frameworks. It is argued that this could lead to improved energy efficiency. The net-zero transition will be significantly accelerated.
The research, conducted ahead of the global WEF annual meeting in Davos, Switzerland, next week, claims that “the potential for demand-side action is extraordinary” and that “it is possible to do it today. It details a number of measures it claims are unnecessary and offer attractive benefits. For new technology. ”
Recommended measures include insulating and other efficiency improvements in buildings, retrofitting green energy measures, electrifying transportation systems, and leveraging artificial intelligence to optimize the design of factory lines to improve efficiency. The report also calls for greater collaboration between companies across the value chain to achieve greater efficiencies, and for “industrial Clustering is also recommended.
The study argues that energy efficiency measures are an “under-addressed” element of the net-zero transition that can deliver substantial energy and emissions reductions.
The report found that proven measures could reduce energy demand by almost a third (31 percent) across buildings, industry and transport sectors in the short term, reducing the need to build around 3,000 additional power plants. It is claimed that this can be avoided.
Additionally, these efforts support the UAE Consensus, agreed at COP28 in Dubai last month, in which hundreds of countries commit to tripling renewable energy capacity globally by 2030; It promises to double the energy efficiency improvement rate.
But to achieve these global ambitions, countries will need to reduce their energy intensity at least twice as fast as before by the end of the decade, starting in 2023.
“It's important to address energy demand as well as supply, reducing the energy intensity of current activities and increasing energy efficiency for future growth,” said Bob Moritz, Global Chairman of PwC. Ta. “This will help the world get back on track with the goals set out in the Paris Agreement, support the COP28 commitment to double the rate of energy efficiency improvement by 2030, and support business growth. Getting this right will require deep cooperation from the entire nation.” Financial solutions need to be developed. ”
Supporting this finding, the 120 CEOs are responsible for an estimated 3% of global energy use. They explained that they were members of the WEF's International Business Council, which met in Davos a year ago to discuss potential demand-side measures to accelerate the transition to clean energy.
However, the report warns that awareness among businesses of the potential of energy efficiency to benefit their businesses, achieve cost savings and support emissions reduction efforts remains low, and suggests that governments should We are calling for more supportive policies.
As many as 47 percent of WEF's International Business Council CEOs surveyed for this report cited a lack of supportive regulation as a barrier to efforts to reduce energy demand.
Council President Ana Botín, group executive chair of Spanish banking giant Santander, said companies have an “important role” in reducing global energy demand, adding that companies will reduce economic output. He emphasized that the reduction can be achieved without any
“Reducing the amount of energy required to manufacture products and provide services is something we can start doing now,” she said. “Despite progress, there is still much work to be done and the fact is that our energy needs continue to grow at an unsustainable rate.
“It is therefore important that we work with governments and regulators in both developed and developing markets to accelerate progress on this issue.”
